The Tesla SpaceX merger has moved from speculation to formal review. On SpaceX’s third-quarter earnings call on Tuesday, October 20, 2026, Elon Musk said the boards of both companies have formed special committees of independent directors to study a possible combination.
“I think it would be a good idea, but it’s really up to the special committees of both companies,” Musk said. He also said there is “a lot of merit to combining the companies.”
Tesla SpaceX Merger: What Musk Said on the Earnings Call
Responding to an analyst’s question, Musk said the committees were formed “at the request of shareholders.” Because he is CEO of both companies and a major shareholder, he described himself as a conflicted party and said he cannot take part in the committees’ discussions.
No terms have been agreed. Musk said there is no guarantee a deal will happen.
Why a Tesla SpaceX Merger Could Make Sense
The two companies already work together in several areas:
- Chips: Terafab, a joint semiconductor project involving Tesla, SpaceX and xAI
- AI and software: shared work across Tesla, SpaceX and xAI
- Robotics: Tesla’s Optimus programme, which depends on chip supply
- Connectivity: Starlink and space-based infrastructure
Shareholder Vote: The Biggest Hurdle for a Tesla SpaceX Merger
On the Tesla side, a deal would need support from a majority of all outstanding shares, not just the shares that vote. Musk called this “quite a high hurdle.”
Governance is also a concern. Musk holds roughly 20% of Tesla but controls about 85% of SpaceX’s voting power, according to Electrek’s analysis. This is why independent committees are reviewing the idea.
Market Reaction and Valuation
SpaceX shares (SPCX) rose about 8% in after-hours trading, and Tesla (TSLA) gained about 1.8%. SpaceX also reported third-quarter revenue of about $14.6 billion, up 161% year over year. Fortune put the combined value of the two companies near $3.5 trillion, which would make it one of the largest corporate combinations ever.
What Happens Next
For now, Tesla and SpaceX remain separate public companies. The special committees will decide whether a merger benefits shareholders and on what terms. Any proposal would then go to a shareholder vote and regulatory review. Tesla reports its own Q3 results on October 21, so investors expect more questions on the merger.
